Your home listed at...$4,500,000 is going to cost you $700,000 in taxes? Cry me a river straight to the bank with your remaining $3,800,000. I hope they raise the tax.
these capital gains taxes are ruining my life! I can't sell any of my assets without paying a small fee! aaaggh!
700k is 20% of 3.5 million
That leaves 2.8 million
If put into savings with a 4% annual interest rate, that is 112k per year
And they are complaining?
You fucking kidding me?
The first $500k is taxed at a lower rate, so they're actually be making more than that on the sale.
Agreed... this couple isn't hurting either way.
However as they said the limit hasn't changed in almost 20 years. For most older people in America their home is the single most valuable possession and what many have to sell when they are unable to care for themselves and have to go into some kind of care facility. For people living in a HCOL area, their home can easily be many times more valuable than their savings and their primary or only asset of significant value, and a $1M house is a starter home.
It makes sense for the limits to be increased, but the couple that's the subject of this article doesn't deserve anyone getting teary-eyed.
2.8 million dollars is more than most people have the ability to save for retirement in the first place.
They want us to cry for them because their payout from a single asset after tax is more than the average middle class retirement account?
Get fucking real, if anything this makes me think the capital gains tax is too low for their bracket.
This is the dumbest fucking article, holy shit. Fucking boomers. Cry more about paying the already generously low LT cap gains tax. Jesus fucking christ.
The one thing that would turn my exhausted ire into joyful schadenfreude is if they equity-leveraged the shit out of it, and didn’t understand that this would hit them in the balls when they eventually sold.
Yeah. My wife and I paid roughly 38% on the 120k we made last year through grueling hours and hard work.
These old fuckers should pay at least that much in taxes on the house they made millions on just by living in it.
I wish the boomers would just die already. At this rate I’m going to live my whole life under their greedy little thumbs
They are soooooo poor 😭 😭 😭 i can't contain my sadness over this unjust tax 😭 😭 😭 Their house is worth 🤑4,5 million dollars🤑, and they don't want to 😡subsidize the state😡, that would be 👿evil socialism👿 ‼️ ‼️ ‼️
damn, i wish i had that problem.
Capital gains tax of up to 20%.
What's 5x 700,000 ?
Yeah, and the tax is only on the profit they make, not the entire selling price.
And any capital improvements will lower that ‘profit’ too. So anything from a new water heater to a new roof can be used to raise the cost basis of the home lowering the tax paid.
"The Friedmans finally put their house on the market in May for nearly $4.5 million"
Cry me a fucking river, boomers.
Enough that they shouldn't fucking care.
I pay zero taxes if I were to sell my house. Because I don't own a house, I can't afford one. I'm forced to rent.
My boomer parents constantly complain their pension is shit. They have to watch their spendings, they tell me. They live in a big house, surrounded by water and nature (in the Netherlands, so expensive AF), with a sailing boat AND an expensive motorboat in front of their house, an SUV and caravan, they completely remodeled their garden including expensive fences, they go on holiday about 5 times a year, they got solar panels and heat pump installed, got a new kitchen, bathroom and toilet, expensive automated sun screens for all their windows (all around the house). But they are treated like shit with their poor pension. My dad bought his first house when he finished his studies, my mom never had to work anymore as my dad made more than enough to support a household of 5, we always lived in middle class neighborhoods, we went to private schools. But they complain they have to buy fuel to come visit me, so they rather have me visit them instead. I live in social housing and struggle every month paying my bills. They never gave me a penny as soon as I left the house as I'm a major disappointment, even though I'm financially and mentally struggling (autism, ADHD, PTSD). They even changed their will because I'm such a disappointment so I will get the bare minimum and my perfect younger brother gets almost everything even though he makes loads of money every month.
I don't give a fuck. I don't want anything from them when they die. I'm not complaining about not getting anything. I'm just complaining their love for me is measured in success and that they are privileged fucks who constantly complain about their sad rich lives while many others are actually struggling and they don't give a fuck about them. They are an example of what's wrong with society. I broke off all contact with them. Fucking boomers. They even turned full right wing racists even though their parents and grandparents fought in the resistance during the second world war and got deported and tortured to death by the nazis in concentration camps.
I guess all the boomer parents are like that. I have a really good relationship with my parents, but they wouldn't help me out when my boyfriend and I bought a flat. Went as far as telling me that I'm trying to rob them, because maybe I can't afford the flat and then the bank will take their houses. I told them the bank just can't do that and they didn't believe me until they went to talk to a lawyer. And best part is, now they always say I'm not thankful because I will inherit their houses and they build them for me? And their parents were really poor small scale farmers, still they saved up to help them with their first home. As you can tell I'm still bitter about that.
I know some proper boomer parents but they are rare AF.
My parents paid everything for my perfect brother when he went studying. He had a luxurious life as a student.
I failed in school, because I was special (autistic later turned out) but should have acted like nothing was wrong. So I didn't get a penny when I couldn't eat for a week because I was completely broke. Instead they told me. To get my shit together, act like an adult for once and take responsibility for my actions.
So far they never acknowledged they ever made a single mistake, they project all their mistakes and failures into me or others, they complain constantly like spoiled entitled teenagers and they do nothing but judge people who are less fortunate.
I'm 38 now, they still tell me I'm behaving like a child even though I always say sorry for the mistakes I make, I always take responsibility and acknowledge when I'm wrong. I fought in wars (in the military), I have fought mental health my entire life, I struggled within the system my whole life, I have loads of friends who I'd die for and who'd die for me, while my parents have no one and are just a bunch of entitled sour lonely fucking boomers. Who's the responsible adult here? Although I doubted myself many many times, my therapists and friends have ensured me it's them, not me. And I started to see that too, so I ended my relationship with my parents for good. And with my entitled little brother who always takes my mom's side no matter what.
At least you got out of that horrible family dynamic! Don't know if I can judge from one comment, but sounds like your wellbeing didn't benefit from the relationship and am happy for you that you're doing better for yourself. And of course there are some nice boomers but even if I have the nicest, most loving parents they just seem they don't care about the future of their kids and next generation while the generations before tried to make their kids' lives better.
My mom is the same with the completely outrageous spending on frivolous things but as soon as it comes to visiting me, a 2 hr plane ride, suddenly she guilts me for spending the money. “ I have to stay with you for 15 days because I paid for this $200 ticket and it’s just not worth it if I stay just a couple days like you say I should “ — I’m autistic and NEED my routine and space back after 5 days maximum. She loves to push boundaries to get what she wants : a free stay at my home in a vacation state. I’m constantly telling her no you cannot stay with me for 2 fucking weeks because you feel entitled and live for pushing boundaries.
I’m very fortunate to have found a house while prices were affordable for me. If I had to attempt it now, I’d be up shit creek. Meanwhile she is building a custom 7,000 square foot home, because of course her 4,000 one is just not cutting it anymore … the garage isn’t pretty enough for her $80,000 suv she randomly wanted AND my step dads $100,000 truck he needed afterwards to match her new car .. fucking ridiculous.
I know a way they could avoid those capital gains taxes...
Oh jesus fucking christ.... sell the damn thing. They'll still walk away with $2.8 million in their pockets that they can't currently spend. They're just being stupid greedy fucks who can't bear the idea that it could become even more valuable if they wait longer.
Nearer $3M as the first $500k is deductible, but mind those closing costs.
Couple are set to make $3.5 million in profit, are asked to pay tax, say no and greedily hoard their asset some more and cry about the hardship.
Fuck off.
They should be asking themselves why they haven't done more to give back to the society that gave them so much, but instead they're whining about a meager 20% tax on staggering profits. Instead of lowering capital gains, it should be raised, over a certain threshold. Hell, we should be taxing the wealth they just have sitting around so that we can show wealthy people like these two shameful selfish pricks what it feels like to really contribute.
Yep that's how taxes fucking work
The unfair part of this is that the $500k threshold for the tax hasnt been updated since 1997.
In 1997 the average price for a house in California was about 180k now its $800k. If the tax was the same ratio it now wouldnt apply until the house was worth about 2.2mil (napkin math, I'm not getting out the calculator) Now I'm not saying they arent crying about a problem many of us would kill to have but thats a difference of about $340,000 in taxes.
And how much have wages gone up? $500k is still very expensive, sounds like maybe it should be a little more but it sounds more like a consequence of letting housing prices run away for a few decades.
Either you shouldnt be paying any capital gains on a primary residence full stop or it should be on a sliding rate over time. (20% for first year -1% per year after)
Buying a house (even a mcmansion) and living in it for 30 years isnt a hustle or an investment strategy... its just living.
That's.... actually an interesting way to slow down flippers.
They knew the limit when they bought the house. And it's gone up more than they could've dreamed. That's plenty fair.
Problem is their house went up by a huge percentage, but so to has every housing arrangement they will need.
Maybe not a whole lot of sympathy for someone having to sort out living arrangements with 'only' $2.8 million or so to work with, but this can scale down to pretty 'normal' house prices like $500k.
It's still only "up to 20%" 🙄
Ohh no they have to pay taxes? Was this written by a toddler?
I swear to go, people are so disgustingly greedy i have little hope without a thorough revolution.
In other words, their house would sell for at least 3.5 million. Where exactly is the problem?
3.5 million is the increase in value over what they paid. That means they were making well over $100,000 every year for the past three decades, and they are complaining about paying cap gains.
Fucking Boomers.
Although increasing the exemption amount to peg inflation does make sense.
Also, fucking Business Insider for running this obvious tripe.
Not surprising from an outlet created by DoubleClick founders and a guy who is barred from exchanges due to securities fraud.
They don't want to contribute to society, even at a lower rate than wagies.
Growing desperate to move, the Friedmans finally put their house on the market in May for nearly $4.5 million.
Make $3,500,000 in profit and you get upset that you have to pay taxes on your 3.5x return on "investment."
If you can't cover <$1M in taxes from the sale of your $4.5M home maybe you should live within your means or get a roommate to help cover the bills like a normal person or something.
What makes this even worse is the article doesn't mention all the money this couple saved by not paying rent for the duration of their home ownership. So not only would they make profit on the sale, they didn't have to pay rent for all those years, and instead got to keep that money, which puts them at a much bigger financial advantage than folks who can't afford a home in the first place.
Boomer couple is doing boomer things.
There's nothing even remotely unfair going on here
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